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TOURISM BUSINESS PLAN OUTLINE

A Service of the International Institute of Soccer Tourism

BUSINESS PLAN OUTLINE

1. Executive Summary

A. Business Summary

· Give name of business

· Provide description and location of plant

· Describe product(s) or service(s)

· Include market(s) and competition

· Highlight management expertise

B. Business History (for established business)

· Give age of business

· Identify prior owners

· State when you acquired and how long you have operated the business

· Describe image or reputation

· Give number of employees

· Provide last year's sales volume and profit

· Discuss any significant events that have affected the company's development

C. Definition of Your Business Goals

State the company's goals and objectives. (Example: Improve cash flow? Improve

Profit? Expand market share?)

D. Summary of Financial Needs and Intended Use of Funds

Explain how much money you need, why you need it, and how you will use the funds.

E. Revenue Projections and Potential Return to Investors or Borrower

Summarize the projections that you will describe in detail later in the plan. Highlight the

benefits of the financing to the business's profitability and return on investment or

repayment of debt.

F. Future Plans

Describe your specific plans. Do you plan to diversify? Will you add new products or services? When? Will you simply maintain the status quo?

II. Products and/or Services

A. Description of Product Line

Describe the product or service (Example: size, shape, color, packaging, computer, hardware, machinery).

Discuss what the product does.

Explain the features and benefits of the service.

Explain how complicated the product is. Can the customer use it immediately? Is training necessary?

Explain how and where buyers obtain the product or service as it relates to identified customer needs

III. Market Analysis

A. Target Market

Describe your potential customers (Example: wholesalers, retailers, consumers, government, other businesses, etc.).

Define your customer (Example: age, income, education level, occupation, lifestyle).

Describe where your customers are located (Example: local neighborhoods, small to medium-size towns or regions, foreign countries).

Estimate the number of customers you have or could have. (Be prepared to back up your estimate with credible research information.) Will you expand your market?

B. Environment

What environmental factors (Example: economic, legal, social, or technological) affect your market or product or service? Environmental factors are those that have significant effects on your operation but over which you have no control.

C. Competition

List major competitors.

Discuss the following: The number of competitors you have (direct or indirect), their products or services, quality, features, price, age of business, location, distribution, reputation/image, market share, size, and marketing strategy.

What percentage of the market will be served by your competition?

Discuss how your product or service meets market needs and how you compare with the competition in terms of product or service, quality, features, price, location, distribution, and other factors. What have you learned from watching the competition?

D. Projections

State your projections in terms of either the number of customers, items sold, or contracts obtained.

IV. Market Strategy

A. Sales Strategy

Describe why there is a market need for your product or service and how long this need will last.

Estimate how much your customers and potential customers will spend on this or similar products or services in the next year. Cite credible sources for this projection. Describe the combination of product, price, and service you will use to make a fair profit and be competitive.

Why will customers pay your price?

State strategies you will use to get the edge on competition and to attract new customers.

Describe how advertising, pricing, distribution, and sales support will affect your sales.

B. Promotion Strategy

Describe how you will promote your product or service.

Illustrate which media you will use for advertising; magazines, newspapers, trade publication, broadcast media.

Describe the public relations and promotional techniques you will use: pricing markdowns, "two for one" offers, educational seminars.

Explain the content of your promotions or advertising and demonstrate how it will reflect the sales strategy you have chosen.

C. Budget

Explain what percentage of projected sales you will use for advertising and public relations.

Describe how your promotional budget compares with the competition or the industry in general.

D. Sales, Distributions, and Servicing Methods

Describe what distribution channels are available and which you will use.

Explain what type of customer service is required and how you will provide it.

State which individuals will personally sell your product or service. Will you hire outside salespeople? How many? How will you pay them?

Describe training and sales materials, if any, that you intend to use to assist sales.

V. Operations/Legal

A. Operating Plans

Describe your operating plans for the next two years.

B. Location

Describe the building and the area where it's located.

Why is this the right building and location for your business? How does the location affect your operating costs?

Explain the other types of businesses in the area. State whether the business location is rented, leased, or owned. If it is rented, state from whom and under what conditions.

Explain what, if any, renovations are needed and what the costs will be. Get written quotes from more than one contractor. Include quotes in the Appendix.

Describe the type of access customers will have to your location (major roads, freeways, public transit, free parking, etc.)

C. Capital Equipment List (Existing Equipment)

List equipment that you use (or will use) to manufacture a product, provide a service, or sell, store, and deliver merchandise.

Describe the equipment's condition. If the equipment has been appraised, include values.

D. Inventory, Supplies, Suppliers

Describe what inventory, raw materials and/or supplies the business uses.

List your suppliers' names and addresses. Describe what you buy from each and how often, cost, reliability, and length of the relationships. Do the prices of your supplies fluctuate? How do you deal with changing costs?

Explain how easy or difficult it is to get necessary supplies. How will you deal with potential or actual shortages?

E. Legal

State form of business (sole proprietorship, partnership, corporation) and status (already formed or in the process of formation).

Describe partnership agreements, buy-sell agreements, franchise agreements, or other legally binding contracts related to the business.

List the specific licenses you need and the status of those licenses (not yet applied, applied and pending, obtained).

Discuss zoning requirements and the status of any changes necessary. Can you demonstrate compliance with zoning and building codes?

State any health code requirements and demonstrate compliance. If not in compliance, describe remedies being taken.

Describe any other laws and regulations that affect the business.

List your insurance requirements and coverage (type, source), cost, and status.

Highlight any proprietary trademarks, patents, licenses, and copyrights held by the business and confirm their legality.

Include the lease agreement for your location

Describe any other encumbrances on the assets of your company, such as outstanding debt or filed liens against assets.

Note: You typically will include copies of these legal documents in the Appendix of your business plan.

VI. Personnel and Management Plan

A. Staffing Plan

State the following for the present and future: necessary number of employees, type of labor (skilled, unskilled, etc.), sources of labor (especially minorities, handicapped, veterans, or other socially or economically disadvantaged groups), and timing of hiring (or layoffs).

Explain what kind of training, if any, you need to provide.

Describe how you will compensate employees (hourly, monthly, commission, etc.).

Describe how your operating plans will affect your staff and managers during the next two years.

B. Officers

Draw an organization chart that breaks down responsibilities of each manager. Include the following for key management personnel (usually owners, partners, large equity investors):

1. Resumes, personal financial statements, tax returns for the last three years, and a personal family budget.

2. Related work experience that qualifies these people to run this type of business.

3. Current or proposed duties and responsibilities.

4. Salaries, incentives, or other compensation.

State how much time management will devote to this business (or to the specific project being financed).

VII. Financial Data

A. Uses of Funds

Describe the project to be financed and the specific amount you are requesting.

B. Capital Expenditure Budget

List the physical facilities and equipment you plan to buy or lease, plus any improvements you intend to make. List the cost for each. Refer to points B and C in Section V (Operations/Legal).

C. Financial Statements

If the business is an existing one, include the following financial statements for the last three years;

· Balance sheet

· Income statement (profit and loss statement)

· Debt schedule

· Cash flow statement

D. Financial Ratio Analysis

Lenders require you to demonstrate your repayment ability. Financial ratios are the best indication of this. You will need to supply lenders with your company's financial ratios as well as industry averages for comparison.

Calculate the following important ratios:

1. Working capital ratio (current ratio)

2. Quick ratio

3. Debt to Net Worth

4. Net profit margin

5. Return on Assets

6. Return on Net Worth (return on investment)

7. Sales to Net Worth

8. Debt coverage

9. Accounts receivable and payable turnover

E. Three-year financial Projections

Calculate reasonable and realistic financial results for the next three years (first year by month; remaining years annually). This should include:

· Income statements (P&L)

· Balance sheets

· Cash flow projections

F. Explanation of Projections

Provide an analysis of the above projections, noting trends in the specific business and in the industry as a whole.

Explain the assumptions behind your projections. Do they account for inflationary increases in labor and other cost? Do you anticipate a certain growth rate to continue? flow do new tax laws affect income?

G. Explanation of Use and Effect of New Funds

Summarize the impact of new ands on the operation, noting where new funds figure significantly in projected results and return on investment.

II. Potential return to Investors or Borrower

Support your financial proposal with information on expected return on invested capital. The most common ratio used is Return on Net worth, also called Return on Investments (ROl). Include the average industry ROl for comparison.

Need help with your tourism business plan? Use our email consultancy service or regular consultancy services. Email to honducopa@yahoo.com. A Service of the International Institute of Soccer Tourism.

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